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SEC has the tools to provide clear guidelines but chose not to — Commissioner Hester Peirce

Author: Content Editor
During a House Financial Services Committee hearing, US SEC Chairman Gary Gensler and four other Commissioners testified before Congress for the first time since 2019. Chairman Patrick McHenry questioned Gensler about the lack of clarity in defining digital assets as securities. Commissioner Hester Peirce criticized the SEC for intentionally using imprecise language to avoid defining tokens as securities and stated that this lack of clarity is a failure on the part of the regulator. Peirce also mentioned that the SEC has the power to provide clarity but chooses not to. Another Congressman, French Hill, questioned the efficiency of the SEC's "regulation by enforcement approach," and Peirce stated that it is not an effective way to protect investors. The SEC has the tools to provide clarity on what tokens are securities and can address the current lack of regulatory clarity.

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